In exercise of the powers conferred
by clause (b) of sub-section(3) of Section 6 and Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999) and in partial modification of its Notification
No.FEMA.20/2000-RB dated 3rd May 2000, the Reserve Bank of India
makes the following amendments in the Foreign Exchange Management (Transfer
or issue of Security by a Person Resident outside India) Regulations, 2000,
as amended from time to time, namely :

1. Short Title and Commencement
:-

i. These Regulations may be called
the Foreign Exchange Management (Transfer or issue of Security by a Person Resident
outside India) (Third Amendment) Regulations, 2005.

ii. They shall come into force
from the date of their publication in the official gazette.

2. Amendment of the Regulations :-

In the Foreign Exchange Management
(Transfer or issue of Security by a Person Resident outside India) Regulations,
2000 in Annexure B the following shall be added :

(a) Minimum area to be developed
under each project shall be as under :

i. In case of development
of serviced housing plots – 10 hectares.

ii. In case of construction
– development project - 50,000 sq.mtrs.

iii. In case of combination
project, any one of the above two conditions.

b. The investment shall
be subject to the following conditions :

(i) Minimum capitalization
of US $ 10 Million for wholly owned subsidiaries and US $ 5 Million for
joint ventures with Indian partners. The funds would have to be brought
in within six months of commencement of business of the Company.

(ii) Original investment
cannot be repatriated before a period of three years from completion of
minimum capitalization.
However, the investor may be permitted to exit earlier with prior approval
of the Government through the FIPB.

c. At least 50% of the
project must be developed within a period of five years from the date
of obtaining all statutory clearances. The investor shall not be permitted
to sell undeveloped plots.

d. The project shall conform
to the norms and standards, as laid down in the applicable building
control regulations, bye-laws, rules, and other regulations of the State
Government / Municipal / Local Body concerned.

e. The investor shall be
responsible for obtaining all necessary approvals, including those of
the building / layout plans, developing internal and peripheral areas
and other infrastructure facilities, payment of development, external
development and other charges and complying with all other requirements
as prescribed under applicable rules / bye-laws / regulations of the
State Government / Municipal / Local Body concerned.

f. The State Government
/ Municipal / Local Body concerned, which approves the building / development
plans, shall monitor compliance of the above conditions by the developer.

Note: For the purpose
of these guidelines, "undeveloped plots" will mean where roads,
water supply, street lighting, drainage, sewerage, and other conveniences,
as applicable under prescribed regulations, have not been made available.
It will be necessary that the investor provides this infrastructure and
obtains the completion certificate from the concerned local body / service
agency before he would be allowed to dispose of serviced housing plots.

( Vinay Baijal )
Chief General Manager

Footnote : The Principal
Regulations were published in the Official Gazette vide G.S.R. No.406 (E) dated
May 8, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended
as under::

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